The key benchmark indices reversed initial gains as investors preferred profit taking ahead of the weekend. Index heavyweight Reliance Industries (RIL) dropped. But, media and consumer durables stocks rose. Realty stocks reversed initial gains. Bank stocks fell on profit taking after a sustained rise over the past days. Commercial vehicles maker Tata Motors surged close to 4% on expectations of strong Q1 June 2010 result which is due early next week. Other auto stocks were mixed. The BSE 30-share Sensex shed 28.84 points or 0.16%, off about 100 points from the day's high and up close to 25 points from the day's low.

The market may edge lower for the second straight day, tracking subdued Asian stocks which fell after overnight losses on Wall Street. Trading of the S&P CNX Nifty futures on the Singapore stock exchange indicated that the Nifty could fall 9.50 points at the opening bell.

After a tepid start and mostly rangebound session, the Indian market slipped late in the day despite further decline in food inflation and not-so-bad global cues. European markets picked up pace after a slow start and markets in Hong Kong and China recovered.

Investors search direction for clarity on the sustainability of the economic recovery

Disappointing initial claims data gave a very weak start to stocks on Thursday, 05 August 2010. Stocks were stuck in negative territory with modest losses for the entire session. The action came ahead of tomorrow's pivotal nonfarm payrolls report. At the end, stocks managed to pare part of heir losses though. Investors searched for clarity on the sustainability of the economic recovery ahead.

We recommend a buy in the stock of Wockhardt from a short-term horizon. It is seen from the charts of the stock that it found support at Rs 115 in late May 2010, which is a significant long-term support and bounced upward. Since then, the stock has been on a short-term uptrend. On Tuesday, the stock jumped 7 per cent accompanied with heavy volume, breaking through its near-term resistance level of Rs 145. Further, the stock's bullish momentum accelerated and it penetrated 200-day moving average as well as key resistance at Rs 160 by surging 7 per cent on August 5. We notice that there has been an increase in volume over the past four trading sessions. The daily relative strength index is featuring in the bullish zone and weekly RSI has entered in to this zone from the neutral region. The weekly moving average convergence divergence indicator is on the brink of entering in to the positive territory. We are bullish on the stock from a short-term perspective. We anticipate the stock to rally further until it hits our price target of Rs 169 or Rs 172 in the forthcoming trading sessions. Short-term traders can buy the stock while maintaining stop-loss at Rs 157.

Bullion metal prices ended higher on Thursday, 05 August 2010 at Comex. A weaker than expected initial claims data increased the appeal of precious metals as an alternate investment. Physical demand of precious metals also rose in anticipation of India's wedding season, starting later this month, as jewelers are expected to snap up the metal at bargain prices ahead of the festivities.